The U.S. Department of Justice (DOJ) has filed an amended complaint and consent decree with George’s Inc. and George’s Foods LLC to resolve claims that George’s conspired with other poultry processors to suppress workers’ wages by exchanging compensation information.
The complaint, filed in the U.S. District Court for the District of Columbia, alleges that the company engaged in anti-competitive conduct such as price-fixing and bid-rigging that harmed consumers and restrained competition in the market; a May 17 DOJ press release said. The action came as part of an investigation into anti-competitive behavior in the poultry industry. The department had previously reached proposed consent decrees with poultry processors Sanderson Farms, Cargill, and Wayne Farms, along with data consultant Webber, Meng, Sahl and Co.
George’s gave "significant and voluntary cooperation" to the Justice Department's investigation, the DOJ said in the release.
“The antitrust laws protect American workers from information exchanges, like these, that damage competition and the competitive process,” Jonathan Kanter, assistant attorney general of the Justice Department’s Antitrust Division, said in the release.
The DOJ noted that George’s allegedly participated in a wide-ranging conspiracy with its industry counterparts to fix prices and rig bids for broiler chicken products. If found to be true, the conspiracy could have severe implications for consumers, who have been paying higher prices due to the alleged anti-competitive behavior.
As part of the proposed consent decree, George's has agreed to several measures aimed at fixing the damage caused by its behavior, the release said. The company will be required to pay fines and restitution of $5.8 million to workers to make up for lost wages, implement comprehensive compliance programs, and cooperate fully with the DOJ's ongoing investigation. In addition, the consent decree may include provisions for the company to divest certain assets or modify its business practices to foster increased competition.
The company will also have to work with a court-ordered compliance officer, the DOJ said.
“Today’s action is another important milestone in the Justice Department’s efforts to hold poultry processors accountable for antitrust violations that harm workers,” Kanter said.
